Mumbai: The rupee on Monday fell by 40 paise to 59.67 in morning trade on the Interbank Foreign Exchange market, on fresh dollar demand tracking strengthening of the US currency overseas.

Forex dealers said besides dollar gaining against other currencies in the global markets, a lower opening in the domestic equity market also, influenced the rupee. The rupee had gained 30 paise to close at 59.27 against the dollar on Friday.

The BSE benchmark Sensex fell by 130.56 points, or 0.70 percent, to 18,643.68 in morning trade on Monday.